Why Buy IBM Shares? Watson
IBM (IBM) is firing on all cylinders lately and its share price reflects its staying power by closing above $200 a share this week. IBM's super computer Watson is going to work for Citigroup (C) and its why the Masters want in now.
Last week we recommended buying IBM shares in 3 Stocks to Buy at 12 Month Highs. IBM was trading just under its 12 month high and this week it made the $200 roll hitting $201.19.
Citigroup (C) is hiring Watson to do what no man can do. The AWESOM-O like computer will help analyze customer needs and process financial, economic and client data to advance and personalize digital banking.
Watson already does work for its health-care clients WellPoint Inc. and Seton Health Family by analyzing data to improve care. IBM executives say Watson’s skills -- understanding and processing natural language, consulting vast volumes of unstructured information, and accurately answering questions with humanlike cognition -- are also well suited for the finance industry.
Watson may add $2.65 billion in revenue in 2015, adding 52 cents of earnings per share, Ed Maguire, an analyst at CLSA in New York, estimated in a November research note (source: bloomberg via fa-mag.com)
MASTERY Bottom line:
Need another reason to buy IBM?
Watson is your answer.
Mastery expects IBM to continue to prosper in 2012.
Our 12 month target price for IBM is now $250.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- White House May Change Calculation Of US Trade Deficit, Boosting Trade War Odds | ZeroHedge
- Alan Greenspan: Ron Paul Was Right About The Gold Standard | ZeroHedge
- Ken Fisher on Double-Digit Returns and Beating the Consensus | Financial Sense
- The AP Asked Trump's Supporters How Feel About His War With The Press: This Is What It Found | ZeroHedge
- Fight Of The Century | ZeroHedge
- Germans: 'Yes, Gold IS Money' | ZeroHedge
- Trump`s Deficit Spending Plan Will Bankrupt United States | ZeroHedge
The most relevant financial news and articles from the Internets
- A man who flew around the world for 3 months on less than $1,000 shares his best... | Business Insider
- A familiar shutdown threat is looming in Trump's future | Business Insider
- ... | Business Insider
- Amazon drops a hint about how many people are signed... | Business Insider
- Britain's justice secretary says Brexit is '... | Business Insider
- Thousands of people share their knowledge online for free — and for many, it's... | Business Insider
- Amazon will create more than 1,500 jobs in France this... | Business Insider